LG Q2 profits up 16%
July 26, 2018
LG Electronics has reported consolidated global sales of KRW 15.02 trillion (€11.8bn) and operating profits of KRW 771 billion for the second quarter of 2018. Second-quarter sales rose 3.2 per cent while operating profits increased 16.1 per cent from the same period last year. Strong profitability from home appliances and air solutions and premium home entertainment products offset second-quarter operating losses from vehicle components and mobile communications.
First-half 2018 sales and operating profits were at all-time record highs. Revenues increased 3.2 per cent from the 2017 first half to KRW 30.14 trillion and operating income rose 18.5 per cent to KRW 1.88 trillion (USD 1.7 billion).
The LG Home Entertainment Company reported second-quarter sales of KRW 3.82 trillion and operating profit of KRW 407 billion. Revenues increased 4.1 per cent from the 2017 quarter due to healthy sales of LG OLED TVs, LG Super UHD TVs and other premium products. Operating income increased 44.1 per cent from the second quarter last year, repeating Home Entertainment’s double-digit operating profit margin performance from the 2018 first quarter.
In the second half, while the global TV market is expected to see weaker demand primarily due to the economic downturn in Latin America, the Middle East and Africa, the company plans to maintain its solid profit strategy by expanding sales of premium products and further enhancing cost competitiveness.